India's Look/Act East policy was first formulated in the 1990s to boost economic, political, and social ties with Southeast Asia. It aims to develop infrastructure like roads, railways, and pipelines connecting India to the region. The policy was upgraded in 2014 as India's "Act East" policy to take a more proactive approach towards engagement with ASEAN countries. Key objectives include increasing trade volume with ASEAN nations, which currently accounts for 10% of India's total trade, and countering China's influence in the region through stronger economic and strategic cooperation.
2. First formulated under Prime Minister P.V.Narasimha
Rao in the 1990’s.
Technically it covers all Asian Pacific Region. But, in
practical terms, it is confined only with South East
Asian regions.
This policy is non-written policy of India
government.
Moreh in Manipur is seen as the key to India’s “Look
East” policy.
3. To counter china.
To increase economic relations with Southeast Asia
by building economic, institutional and defence links
with the region.
To forge social, economic and cultural relations with
the countries of East Asia.
To renew political contacts and understanding with
ASEAN member states.
Development of north east India.
4. To build the Asian Highway and Asian Railway Link
and the natural gas pipeline.
Kaladan Multi-Modal Transit Transport Facility
aimed at establishing connectivity between Indian
ports and Sittwe port in Myanmar.
Road in Mizoram is envisaged as providing an
alternate trade route to the northeast.
5. The Mekong-Ganga Cooperation and Kunming
Initiative have been undertaken by India to boost
cooperation in tourism, culture, transportation and
education with tha ASEAN.
Mekong has the potential for direct flights between
Guwahati- Ho Chi Minh City-Imphal-Hanoi.
The India–Myanmar–Thailand Trilateral Highway
Project and its extension to Laos and Cambodia.
6. PM Narendra Modi unveiled India’s ‘Act East’ Policy
at the ASEAN Summit in November 2014.
It is an upgradation of the Look East Policy.
More action-oriented policy towards ASEAN
specifically and East Asia in general.
Establishing a special purpose vehicle for project
financing, building information highways, and
inviting ASEAN countries to participate in India’s
ongoing economic transformation.
7. India’s Strength
Computer Software (Information Technology).
Pharmaceuticals.
Huge Potential Demand and marketing.
East Asia’s Strength
Electronic Equipment.
Heavy Engineering.
Product Development.
8. ASEAN is at the core of our Act East
Indo-ASEAN trade accounts for 10% of all Indian
trade
India-ASEAN trade volume = $ 70 billion in 2012,
$79.6 billion as of 2014. Hope of reaching $100
billion by 2015 and double that volume by 2022.
India–ASEAN have signed FTA in goods and later
extended it to include services.
It’s Dimension
9. In 2009, an Indo-ASEAN TIG (Trade in Goods)
Agreement was signed.
India has also formally signed the FTA on Services
and Investment in 2014, with ASEAN countries.
India's exports stand at $334.4 million, while it
imports goods worth over $1 billion from Myanmar.
Share of ASEAN’s total trade, India counts for only
3%. China's accounts 11% of all ASEAN trade.
13. Indian exports to ASEAN:
In 1992, India exports to ASEAN countries account
for 1369.34 million Dollars (0.69% of the total
ASEAN imports).
In 2009, Indian exports accounts for 17898.83
million Dollars (2.50%).
Indian imports from ASEAN:
In 1992, India imports from ASEAN exports account
for 1168.32 million Dollars (0.83 % of the total
ASEAN exports).
In 2009, India imports from ASEAN exports account
for 23968.10 million Dollars (3.03 % of the total
ASEAN exports).
14. Agreements signed and implemented:
Preferential Trade Agreements:
• Asia Pacific Trade Agreement (1975)
• South Asian Preferential Trade Agreement (SAPTA
1993).
Free Trade Agreements:
• India-Nepal-One way FTA (1991/2002).
• India-Bhutan (1995/2006).
• India-Singapore CECA (2005).
• South Asia Free Trade Area (SAFTA) (FTA in Goods-
2004 – implemented from 1.1.2006).
• India-Thailand FTA & India-ASEAN FTA.
15. Issues of Infrastructure.
Lack of Local Support.
Crisis of Insurgency.
States’ Incapacities.
Limited Economic Integration.
Inefficient bureaucratic processes.
16. Build up the population skill base.
Improve education system.
Roads needs to be maintained.
Counter and eliminating insurgency.
Border areas have to be made safe.
Inner Line Regulation of 1873 and the Restricted
Area Permit (RAP) required for foreigners must be
revoked.
17. Development of infrastructure in the North Eastern
region.
Increase in FDI.
Social Welfare beneficiaries.
Harmonious, peaceful and prosperity.
More integration with the world economy.
Fill the void caused by the collapse of the Soviet
Union.
Help the country in overcoming its isolation from a
world-wide phenomenon of joining regionalism.
18. As this policy is on going process, actual benefits and
loss cannot be identified.
North Eastern parts of India will play a crucial role.
The main way of trade will be water.
Exports of the country will Increase.
Open up the economy towards east will bring
economic, political and social benefits to the country.